Fiscal space sufficient for Oil Fuel Fund loans

Ministries consider borrowing measures

- WICHIT CHANTANUSORNSIRI

The Oil Fuel Fund has a borrowing capacity of 20 billion baht, which is expected to support price stabilisation efforts for some time. If additional borrowing is necessary and the government has to guarantee the loan under an emergency decree, the borrowing will be considered public debt, says the Finance Ministry.

(SOMCHAI POOMLARD)

Fiscal space for fiscal 2026 still exceeds 300 billion baht, which is sufficient if the government needs to guarantee loans for the Oil Fuel Fund, according to the Finance Ministry.

A source from the ministry who requested anonymity said it is awaiting a proposal from the Oil Fuel Fund on whether it will issue an emergency decree to borrow funds, with the Finance Ministry acting as guarantor, in order to stabilise domestic retail oil prices.

Authorities will also assess how much borrowing is appropriate, as well as review the fund's financial position and the extent of its deficit, the source said.

For fiscal 2026, the government crafted a deficit budget, with 860 billion baht in borrowing planned to finance the shortfall.

If the full borrowing amount is utilised, which usually does not happen based on budget disbursement efficiency, public debt could rise to a maximum of 68.2% of GDP.

As of January, Thailand's public debt tallied 66% of GDP.